American Airlines Group Inc. (AAL) Reports Second-Quarter Results; Exceeds Expectations
American Airlines Group Inc. (NASDAQ:AAL) is included in our list of the 10 Cheap Travel Stocks to Buy According to Analysts.
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On July 24, 2025, American Airlines Group Inc. (NASDAQ:AAL) reported Q2 2025 earnings. The stronger-than-expected earnings were marked by adjusted EPS of $0.95, exceeding the consensus estimate of $0.79. Furthermore, resilient premium demand and strong international performance, particularly in transatlantic routes, helped the company post revenue of $14.4 billion. However, domestic unit revenue dropped 6% YoY due to softness in domestic leisure.
Meanwhile, American Airlines Group Inc. (NASDAQ:AAL) maintained an operating margin of 8% and generated $791 million in free cash flow during the quarter. The company’s financial health further improved with debt repayments, taking its net debt to $29 billion, the lowest since 2015.
For Q3, American Airlines Group Inc. (NASDAQ:AAL) has projected EPS to range between a $0.10 and $0.60 loss. The company does consider July as the trough, but anticipates sequential improvement in revenue. For the full year, it expects its EPS to range from a $0.20 loss to a $0.80 profit.
Looking beyond 2025, American Airlines Group Inc. (NASDAQ:AAL) expects a full recovery of indirect channel share by the end of this year which would boost 2026 revenue.
On the analyst front, BofA, on July 25, 2025, increased its price target on American Airlines Group Inc. (NASDAQ:AAL) from $12 to $13, maintaining a ‘Neutral’ rating. The analyst cited Q3 guidance that fell below expectations.
American Airlines Group Inc. (NASDAQ:AAL), a network air carrier, provides scheduled air transportation services for passengers and cargo. It is included in our list of cheap travel stocks.
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